T K Lo & Co

Snapshot of Hong Kong Taxation

Hong Kong Inland Revenue Department is responsible for the administration of the following Ordinances

• Betting Duty Ordinance
• Business Registration Ordinance
• Estate Duty Ordinance
• Hotel Accommodation Tax Ordinance
• Inland Revenue Ordinance
• Stamp Duty Ordinance
• Tax Reserve Certificates Ordinance

 The main kinds of income tax in Hong Kong under Inland Revenue Ordinance are:

• Profits Tax
• Salaries Tax
• Property Tax

 The characteristics of income tax in Hong Kong are:

• Source concept: only income arising from activities in Hong Kong subject to tax
• Non-resident person, including foreign individual and overseas corporate body, also be liable for income tax in Hong Kong
• No tax on dividend income

 Hong Kong does not have:

• Capital Gain Tax
• Estate Duty 
• Goods and Services Tax (GST)
• Value-Added Tax (VAT)